Cross sectional cost-allocations (COSAC) (allocation of costs to different products or objects at the same time intervals) are routine accounting procedures for most organisations. However, the purpose and decision making usefulness of COSAC remains controversial. Does COSAC have meaningful...

The theoretical derivation of the volatility of accounting earnings is an important topic. Not only does it concern the uncertainty in earnings measurement, but it also allows for an objective comparison between different accounting allocation procedures. An accounting allocation that yields a...